By Fulton County Commissioner Lynne Riley

The Board of Commissioners continues to receive information that property tax revenues for 2009 will be lower than expected. In January, I stated I did not feel that the revenue projections were accurate, and for that reason I voted against the Fulton County General Fund budget.

The 2009 budget was prepared on the assumption that Fulton County would retain about 72 cents of every dollar of value in dispute from the 2008 commercial property revaluations, and the county would collect at least 90% of all taxes levied in 2009. However, appeals are currently settling for roughly 36 cents on every dollar of value in dispute. In addition, no consideration was given for the expected avalanche of returns of value filed by property owners from January 1 to April 1, 2009. Currently the number of returns filed stands at over 28,000. On or about the second week of June, 105,000 property assessment notices (mostly residential) for 2009 will be mailed out. Of those, at least 72,000 will have lowered assessments.

These three very important factors will dramatically affect the total taxable value of real property in Fulton County.

The County Manager projected a $9 million dollar budget shortfall in the first quarter of 2009. The current trend indicates, conservatively, that the County is heading for an annual budget shortfall of at least $40-50 million dollars. The final projections are difficult, as it will be mid-July before we have an understanding of the magnitude of property valuation appeals for 2009. The County Manager has implemented a hiring freeze and a freeze on non-essential spending in an effort to balance the 2009 budget. A mid-year budget review is planned during the month of June, at which time additional information will be presented to the Board of Commissioners on this situation.

The Board of Commissioners will be called upon to make challenging decisions: service reductions, eliminate capital funding, spend down all available reserves, or raise taxes. The City of Atlanta and Gwinnett County have announced the intent to raise property tax rates this year, and Fulton County residents need to be attentive to this possibility being proposed by their Commissioners.

I am adamantly opposed to property tax increases. Taxpayers in Fulton County must tell your Commissioners how you feel about the choices before them. Your involvement is vital in this process. I will provide updated information on budget meetings and millage rate public hearings as they are scheduled in the next few months.

EXPECT AN INCREASE IN YOUR PRIMARY RESIDENCE 2009 PROPERTY TAX BILL

Regardless of where you reside in Georgia, you can expect an increase in your primary residence 2009 property tax bill. The State of Georgia has eliminated the Homestead Tax Relief Grant (HTRG) that was reflected in past years on your property tax bill as a credit against local property taxes. In 2009, Governor Perdue rescinded this grant to homeowners, and the state legislators passed legislation to restore the grants, contingent on available funding. There will be no funding available for 2009. Even if Cities, Counties and School Boards do not increase their millage rates, and even with no increase in assessed property value, tax bills on homeowners’ primary residence will increase by an average of $250.00.

House Bill 143, signed by the Gov. Perdue, does not allow local governments to include a notice on the tax bill regarding the elimination of the credit.

MARTA

In a clear display of taxpayer disrespect, the Board of the Atlanta Regional Commission acted this week to allocate $25 million dollars of Federal stimulus funds to MARTA unconditionally. MARTA indicates that this is a ‘one-time’ reduction of operational shortfalls, and asks us to ‘hope’ that the state and the General Assembly will act in 2010 to “save” them. I find it difficult to explain to our constituents that they are required to commit tax dollars to a transit system that relies on hope as its primary business plan. Hope will not guarantee to the citizens of the region the existence of a MARTA system in the short or the long term that can deliver on its promised capital projects in return for a $25 million dollar contribution. Review of MARTA’s 10-year capital plan shows no investment in tangible system expansion assets. MARTA persuaded the City of Atlanta and Fulton and DeKalb Counties to extend the collection of the penny sales tax based on the promise of major system expansion. Without continued dedication of 50% of the penny sales tax to capital funding, MARTA will be unable to meet its current debt service and maintain the assets of the system in place today. Unfunded liabilities of the MARTA system are also a significant threat to its viability. These facts alone are sufficient to justify extreme caution in the sub-allocation of Federal funds to MARTA.

Taxpayers have invested $25 million, and have every right to expect that their investment be protected. $25 million provided today to cover operating costs may not ever be recovered from a failing transit system, unless enforceable remedies are put in place proactively.’

As a citizen and taxpayer of Fulton County, I am very concerned about MARTA’s ability to perform on its promises, and am disappointed that regional leaders would authorize the use of funds with no accountability or protection of taxpayer dollars.